Published: Thursday, July 25, 2013 at 4:01 p.m.

Last Modified: Thursday, July 25, 2013 at 4:01 p.m.

MANATEE COUNTY - In an old industrial building where Wellcraft once made the Scarab cigarette boats made famous on 1980s TV show "Miami Vice," the centerpiece these days is a giant robotic router.

The four-legged mechanical monster sprawls over a 20-foot-long chunk of high-density foam that will ultimately define the deck of a freshly designed yacht.

The current activity stands in stark contrast to recent years, and is a potent symbol of how far the region's boat building industry — one of Southwest Florida's most important historic drivers — has come.

Throughout the Great Recession and its aftermath, from 2009 until last year, the old Wellcraft complex — 35 acres and 350,000 square feet of buildings — stood empty. Its parent company had moved operations to Michigan.

Along with Chris-Craft Corp., which furloughed the remainder of a shrunken workforce in late 2008, and Donzi Marine, which pulled up stakes for North Carolina in 2010, the empty Wellcraft complex stood as a powerful reminder of the demise of local boat building.

"Chris-Craft and Wellcraft were definitely big production guys," said Wylie Nagler, the founder and head of the Bradenton-based Yellowfin Yachts, which has emerged as a major player regionally.

"There were a lot of vendors that they kept alive," he added. "When they plummeted, a lot of those guys went out of business."

Before the economic downturn began in 2007, boat building accounted for roughly 2,000 direct paychecks in the region. Today, it's about a quarter that figure.

Countless others, from teak deck makers to welders to electrical system outfitters, got hammered as well.

And while the industry hasn't returned to anywhere close to its peak of nearly a decade ago, signs of significant life abound.

Companies like Yellowfin and Chris-Craft that survived the recession are going strong. Others, like Panga Marine, Hann Powerboats and Andros Boatworks, are smaller but no less active.

"It is a tough business to make a profit in, but it is a whole lot of fun," said Rob McDaniel, whose Panga Marine cranks out 75 boats a year.

Yellowfin has quietly grown to employ 140 workers — only 50 fewer than the area's chief boat-making employer, Chris-Craft. The company has gained a global reputation for quality, too.

"We really haven't skipped much of a beat," said Nagler, whose bigger boats — ranging from 29 to 42 feet in length — run from $175,000 to $500,000-plus.

Chris-Craft never shut down completely, but it was forced to put its last 200 workers on a six-week furlough in late 2008.

"Our employment has risen steadily since 2009 to where it is now," said Chris-Craft spokesman Nick Karpuk.

He said the company has a payroll of 190 people and has about 10 job openings.

Likewise, at the former Wellcraft complex occupied by JRL Ventures/Marine Concepts, there are 60 people on the payroll. Wellcraft, by comparison, once employed more than 2,000.

But the new owners, former Wellcraft executives, say they are just getting started and plan to grow patiently.

"We will invest in technology here," said JRL president Matt Chambers, who joined JRL when Wellcraft left the region and now runs the company from its headquarters in Cape Coral.

A few years from now, Chambers predicts, JRL in Sarasota will be operating five robotic routers, not just one, and will employ about 500 — not 60.

Andros, meanwhile, has carved out a niche among high-end buyers who want fast fishing boats.

Its largest hull is 32 feet, but Andros co-owner Andy Eggebrecht says the company has a seven-figure project in the works involving fiberglass molds where the Scarabs once were made.

"Yeah, we lost a big manufacturer," said Eggebrecht. "But instead of that we got the industry's leading marine technology company."

Carving out a niche

While the outside world may view boat building as a monolithic industry, it is comprised of several specialized sub-markets.

Locally owned Panga moved its manufacturing to Sarasota in 2005 from Mexico to better control quality and cut shipping costs on its fuel-efficient fishing boats.

"When the depression came, business went way off," McDaniel said.

His business didn't suffer as much as it could have, though, because Panga was only beginning to establish its brand in the U.S.

During the recession, business dropped nearly in half, to 30 boats a year. This year, he has commitments for 75 boats — the company's best production ever.

"Things are at their best now," said McDaniel.

Another Sarasota boat maker that has carved out a niche market is Hann Powerboats.

Owner Russell Hann started making fiberglass recreational boats a decade ago, but found a better market building 50-foot training boats for the U.S. Navy. Those orders carried him through 2009 and into 2010 before they, too, dried up.

"Then, it just dropped off," Hann said. "Budgets were tightened."

Fortunately, he has linked with the U.S. Air Force to deliver towable target boats that can travel at relatively high speeds in waves without taking on water. The agency has purchased about 50 so far.

At the same time, Hann is building aluminum-hulled patrol boats to combat pirates off the coast of Africa.

Feasible 'new normal'

The recession's crush that shocked Wellcraft to its core in 2008 hit JRL's business the following year, when boat builders focused on unloading bloated inventories instead of new designs.

"In October 2009, the phone stopped ringing," said Chambers.

JRL's experience echoed that of the industry nationally.

After selling an average of 309,000 powerboats a year from 1992 through 2006, U.S. sales bottomed out at roughly 142,000 in 2009 and 2010, according to statistics from the National Marine Manufacturers Association.

"It was very dramatic," said Thom Dammrich, president of the trade association. "A real shock."

Out of about 1,000 U.S. boat makers before the downturn, roughly one-fifth went dark during the recession.

This year the industry will produce about 170,000 boats in the U.S. Dammrich sees 200,000 annually as a feasible "new normal."

To stay alive, JRL and Marine Ventures diversified into other kinds of mold making. Its backlog is now split fairly evenly. On its production floor, employees work on molds for water-slides, helicopter simulators and parts to ease wind drag on commuter trains.

"The volume isn't back yet to the boom level, but on the other hand, Marine Concepts is grabbing a bigger piece of the market," Chambers said.

But while business has returned, the downturn left Chambers with a profound respect for the cyclical nature of the boat building business.

"The marine industry will have a slump again. It always does," said Chambers. "The strength for us is that we have diversified. We are better prepared to go through those than we ever were before."

<p><em>MANATEE COUNTY</em> - In an old industrial building where Wellcraft once made the Scarab cigarette boats made famous on 1980s TV show "Miami Vice," the centerpiece these days is a giant robotic router. </p><p>The four-legged mechanical monster sprawls over a 20-foot-long chunk of high-density foam that will ultimately define the deck of a freshly designed yacht.</p><p>The current activity stands in stark contrast to recent years, and is a potent symbol of how far the region's boat building industry — one of Southwest Florida's most important historic drivers — has come.</p><p>Throughout the Great Recession and its aftermath, from 2009 until last year, the old Wellcraft complex — 35 acres and 350,000 square feet of buildings — stood empty. Its parent company had moved operations to Michigan.</p><p>Along with Chris-Craft Corp., which furloughed the remainder of a shrunken workforce in late 2008, and Donzi Marine, which pulled up stakes for North Carolina in 2010, the empty Wellcraft complex stood as a powerful reminder of the demise of local boat building.</p><p>"Chris-Craft and Wellcraft were definitely big production guys," said Wylie Nagler, the founder and head of the Bradenton-based Yellowfin Yachts, which has emerged as a major player regionally.</p><p>"There were a lot of vendors that they kept alive," he added. "When they plummeted, a lot of those guys went out of business."</p><p>Before the economic downturn began in 2007, boat building accounted for roughly 2,000 direct paychecks in the region. Today, it's about a quarter that figure.</p><p>Countless others, from teak deck makers to welders to electrical system outfitters, got hammered as well.</p><p>And while the industry hasn't returned to anywhere close to its peak of nearly a decade ago, signs of significant life abound.</p><p>Companies like Yellowfin and Chris-Craft that survived the recession are going strong. Others, like Panga Marine, Hann Powerboats and Andros Boatworks, are smaller but no less active.</p><p>"It is a tough business to make a profit in, but it is a whole lot of fun," said Rob McDaniel, whose Panga Marine cranks out 75 boats a year.</p><p>Yellowfin has quietly grown to employ 140 workers — only 50 fewer than the area's chief boat-making employer, Chris-Craft. The company has gained a global reputation for quality, too.</p><p>"We really haven't skipped much of a beat," said Nagler, whose bigger boats — ranging from 29 to 42 feet in length — run from $175,000 to $500,000-plus. </p><p>Chris-Craft never shut down completely, but it was forced to put its last 200 workers on a six-week furlough in late 2008. </p><p>"Our employment has risen steadily since 2009 to where it is now," said Chris-Craft spokesman Nick Karpuk.</p><p>He said the company has a payroll of 190 people and has about 10 job openings.</p><p>Likewise, at the former Wellcraft complex occupied by JRL Ventures/Marine Concepts, there are 60 people on the payroll. Wellcraft, by comparison, once employed more than 2,000. </p><p>But the new owners, former Wellcraft executives, say they are just getting started and plan to grow patiently.</p><p>"We will invest in technology here," said JRL president Matt Chambers, who joined JRL when Wellcraft left the region and now runs the company from its headquarters in Cape Coral. </p><p>A few years from now, Chambers predicts, JRL in Sarasota will be operating five robotic routers, not just one, and will employ about 500 — not 60. </p><p>Andros, meanwhile, has carved out a niche among high-end buyers who want fast fishing boats.</p><p>Its largest hull is 32 feet, but Andros co-owner Andy Eggebrecht says the company has a seven-figure project in the works involving fiberglass molds where the Scarabs once were made.</p><p>"Yeah, we lost a big manufacturer," said Eggebrecht. "But instead of that we got the industry's leading marine technology company."</p><p><b>Carving out a niche</b></p><p>While the outside world may view boat building as a monolithic industry, it is comprised of several specialized sub-markets.</p><p>Locally owned Panga moved its manufacturing to Sarasota in 2005 from Mexico to better control quality and cut shipping costs on its fuel-efficient fishing boats.</p><p>"When the depression came, business went way off," McDaniel said.</p><p>His business didn't suffer as much as it could have, though, because Panga was only beginning to establish its brand in the U.S.</p><p>During the recession, business dropped nearly in half, to 30 boats a year. This year, he has commitments for 75 boats — the company's best production ever.</p><p>"Things are at their best now," said McDaniel.</p><p>Another Sarasota boat maker that has carved out a niche market is Hann Powerboats.</p><p>Owner Russell Hann started making fiberglass recreational boats a decade ago, but found a better market building 50-foot training boats for the U.S. Navy. Those orders carried him through 2009 and into 2010 before they, too, dried up.</p><p>"Then, it just dropped off," Hann said. "Budgets were tightened."</p><p>Fortunately, he has linked with the U.S. Air Force to deliver towable target boats that can travel at relatively high speeds in waves without taking on water. The agency has purchased about 50 so far. </p><p>At the same time, Hann is building aluminum-hulled patrol boats to combat pirates off the coast of Africa.</p><p><b>Feasible 'new normal'</b></p><p>The recession's crush that shocked Wellcraft to its core in 2008 hit JRL's business the following year, when boat builders focused on unloading bloated inventories instead of new designs.</p><p>"In October 2009, the phone stopped ringing," said Chambers.</p><p>JRL's experience echoed that of the industry nationally.</p><p>After selling an average of 309,000 powerboats a year from 1992 through 2006, U.S. sales bottomed out at roughly 142,000 in 2009 and 2010, according to statistics from the National Marine Manufacturers Association.</p><p>"It was very dramatic," said Thom Dammrich, president of the trade association. "A real shock."</p><p>Out of about 1,000 U.S. boat makers before the downturn, roughly one-fifth went dark during the recession.</p><p>This year the industry will produce about 170,000 boats in the U.S. Dammrich sees 200,000 annually as a feasible "new normal."</p><p>To stay alive, JRL and Marine Ventures diversified into other kinds of mold making. Its backlog is now split fairly evenly. On its production floor, employees work on molds for water-slides, helicopter simulators and parts to ease wind drag on commuter trains.</p><p>"The volume isn't back yet to the boom level, but on the other hand, Marine Concepts is grabbing a bigger piece of the market," Chambers said.</p><p>But while business has returned, the downturn left Chambers with a profound respect for the cyclical nature of the boat building business.</p><p>"The marine industry will have a slump again. It always does," said Chambers. "The strength for us is that we have diversified. We are better prepared to go through those than we ever were before."</p><p>Chris-Craft, too, remains optimistic for now.</p><p>"Everything looks good for the future," Karpuk said.</p><p><empty></p>